User:BobbyJC/realasave
Real-a-Save is an online real estate company specializing in rebating and flat-fee listings. Real-a-Save is currently available along the Front Range of Colorado in the Denver/Boulder, Colorado corridor. The company is a fully-licensed real estate brokerage in the State of Colorado, and provides both buyer and seller services. Realasave.com's website offers a Google Maps-based search and features a mash-up polygon search tool developed internally by Real-a-Save's CTO.
New Business Model
Real-a-Save.com is one of several online real estate companies launched between 2000-2007 which specialize in buyer commission rebates and flat-fee listing services for sellers. Other such companies include Redfin, BuySideRealty, Zip Realty, and Rebate Reps. All of these companies offer some combination of either rebating a portion of the real estate agent's commission to the buyer, and/or offering to list a seller's home for a discount or flat-fee.
The Traditional Real Estate Model
Traditional real estate includes companies like Coldwell Banker, ReMax, Century 21, and Prudential. Realtors at traditional companies typically charge a certain percentage of the home's value as the fee, called a commission, for selling the home. A broker selling a home is called the listing broker (seller's agent), while a broker representing a buyer is called buyer's agent. The listing broker will generally keep part of the commission for herself, and offer part of the total commission to a selling agent. The commission offered to the buyer's agent is referred to as a "co-op", or a cooperating fee. Commission rates are not set and vary from region to region around the USA.
Traditional real estate agents generally provide services to their buyer clients for no charge to the buyer
Competition in Real Estate
The US Department of Justice has launched a website describing how the relatively new practice of offering buyers commission rebates and offering sellers flat-fee listing services can save consumers substantial money on real estate fees. The Department has taken an aggressive stance against states which try to limit the practice of rebating. The Department views such limitations as anti-competitive in nature and they have fought successfully to overturn anti-rebating laws in Kentucky[1], Montana[2], South Dakota[3], Tennessee[4], and West Virginia[5]. According to the Department of Justice: "The Division investigates state commissions and other bodies that regulate real estate brokers in ways that restrict licensed brokers from offering rebates." [6]
Company Management
Bob Connors is the Founder and CEO of Real-a-Save. John Noble is the CTO of Real-a-Save.
Sources
1. US Department of Justice Antitrust Division: http://www.usdoj.gov/atr/public/real_estate/rebates.htm
2. Rocky Mountain News: http://www.rockymountainnews.com/news/2007/dec/17/forget-the-traditional-buying-or-selling-a-web/
3. DocuSign Podcast interview: http://www.docusign.com/news_and_events/podcasts/DS_Realasave_PODCAST_071907.mp3
4. Press release : http://www.prweb.com/releases/2007/04/prweb520393.htm
5. press release : http://www.prweb.com/releases/2007/06/prweb534733.htm
6. press release : http://www.prweb.com/releases/2007/11/prweb565901.htm
7. Docusign's press release: http://docusign.com/news_and_events/press_releases/2007-07-25.php
External Links
[1]Real-a-Save Website [7]
[2] Department of Justice Antitrust Division: Competition in Real Estate [8]